Stablecoins 101: types + why “depegs” happen

Stablecoins aim to stay near $1, but not all are built the same.

1) Fiat-backed (USDC/USDT)
- Backed by cash + short-term bonds (off-chain reserves)
- Risks: bank/exchange issues, regulatory freezes, redemption delays

2) Crypto-collateralized (DAI-style)
- Backed by on-chain crypto locked in smart contracts
- Risks: collateral crash, liquidations, oracle glitches

3) Algorithmic (various)
- Uses incentives/market mechanics instead of hard reserves
- Risks: confidence spirals → fastest path to a big depeg

What is a depeg?
Price drifts from $1 (up or down) due to liquidity, fear, redemption friction, or collateral stress.

Mini experiment (24h)
Pick 1 stablecoin + 2 exchanges.
Every hour record: price, spread, volume, and any news.
Then answer: Which exchange leads the move? When do spreads widen?

#crypto #stablecoins #Depeg #Trading #Education

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